Nigeria’s Central Bank Approves Framework for a Mortgage Refinance Company
| Date Published | 3/29/2013 |
| Author | Marja Hoek-Smit |
| Theme | |
| Country | Nigeria |
The Central Bank of Nigeria (CBN) approved the draft framework for operating
a mortgage refinance company in Nigeria. A circular issued by the Director,
Other Financial Institutions Supervision Department of the CBN, Olufemi
Fabamwo, states that the framework provides for the "licensing and
establishment of a Mortgage Refinance Company (MRC) as a specialised
second-tier institution which would provide short-term liquidity, long-term
funding and/or guarantees to mortgage originators and housing finance lenders."
The Nigerian Mortgage Refinance Corporation (NMRC) will be established as a
PPP arrangement. Partners will include the federal government, Nigeria's local
banks and savings & loans institutions, and multilateral institutions. The
World Bank intends to provide concessional credits of $300million (N45
billion). At a later stage, NMRC would access the capital markets to raise
long-term funds via bond issues.
Link to Document: Click here